French President Emmanuel Macron has called for a fundamental review of the European Central Bank's monetary policy framework, citing persistent inflation pressures and stagnating growth in the eurozone. His remarks signal growing political pressure on central bank independence.
- ECB's benchmark interest rate remains at 4.5% as of July 2024
- Eurozone inflation was 3.4% in October 2025
- Real GDP growth in the eurozone at 0.3% annually
- Italian 10-year bond yield exceeded 4.8% in late November 2025
- Eurozone industrial production declined 0.6% in Q3 2025
- German 10-year bund yield rose to 2.31% following Macron's remarks
Emmanuel Macron, speaking at a high-level economic forum in Paris, challenged the ECB's current approach to inflation targeting, arguing that the central bank's rigid adherence to price stability metrics may be undermining broader economic resilience. He emphasized that with inflation still above the ECB's 2% target—remaining at 3.4% in October 2025—while real GDP growth in the eurozone hovered near 0.3% annually, a recalibration is necessary. Macron stressed that the current policy path risks deepening the economic divide between core and peripheral eurozone members. The president highlighted that the ECB's benchmark interest rate, held at 4.5% since July 2024, has contributed to a sharp rise in borrowing costs, with government bond yields in Italy and Spain exceeding 4.8% and 4.2%, respectively. He warned that sustained high rates without a clear exit strategy could stifle investment, particularly in digital infrastructure and green transition projects critical to the EU's 2030 goals. Macron's comments come as eurozone industrial production declined by 0.6% in Q3 2025, marking the third consecutive quarter of contraction. Market reactions followed swiftly. The euro strengthened to 1.08 against the dollar, while the German 10-year bund yield rose to 2.31%, reflecting investor speculation about potential policy shifts. Stock indices across Europe, including France’s CAC 40 and Germany’s DAX, saw initial gains before narrowing losses, indicating cautious optimism. Analysts suggest that Macron’s push may prompt the ECB to consider a more flexible approach, possibly incorporating growth and employment metrics more prominently into its policy evaluations.